Charged £1700 for early repayment on £9200 loan!

ali32j

Hi All

I am absolutely astounded at charges i have been charged on early repayment of a loan,

i took a loan out in May 07 (this year!) value of £9200, included payment protection which was added upfront to the loan, so total was 12300, i took advantage of deferred start of payment first payment being AUg this year, in total i have payed £995 in payments today

i phoned up to settle today to be told the settlement fee on my loan was £9936.56, so effectively for this loan it has cost me over £1700 for 6 months! can this be right!!!????

if so all i can say is DO NOT near Lloyds loan with payment protection, this is nothing short of loan shark territory (in fact i would have probably got a better rate!!)

WOuld appreciate anyone elses thoughts here

Ali

Butlers1982

(in fact i would have probably got a better rate!!)

You should have shopped around then!

firthjm

Might be able to reclaim the insurance you paid, unfortunately i believe that as thats the rate you agreed to borrow at thats what you have to pay back.

i have given the link to martins PPI guide below:

Anyone who’s got or had a personal loan, secured loan, credit or store card may be able to reclaim £1,000s. The mis-selling of Payment Protection Insurance (PPI) on these products has been so severe, some people mightn’t even know they have it. This is a step-by-step guide, including template letters, to reclaim the cost of loan and card insurance.

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

@Butlers1982, i feel your being a bit unfair towards the OP we dont know the full circumstances, maybe the OP's bank were the only ones who would give a loan?

jonesMUFCforever

Your borrowed £12300 no payments for 4 months but interest accruing say £330 so total o/s = £12630 - £995 you have made in repayments = £11635 less refund of PPI = £9936.
In my book it has cost you £736 to borrow this amount not £1700.

petermb_2

The chances are that you could get the full ppi premium plus interest back. Dont be fobbed off and dont let them get away with it.